Solutions

Residential Product Bulletin

2nd Quarter 2020

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Overview

RCT Express® Product Bulletin Highlights

CoreLogic® monitors a wide variety of construction materials for the residential building industry. A few of this quarter’s highlights are:

  • From Q4 2019 to Q1 2020, the average for U.S. building materials increased 0.01%. For labor, the average wage rate increased 0.6%, based on construction trade contracts that were renewed during the quarter.
  • The average change for Canadian building materials was an increase of 0.8% over the quarter. Based on the construction trade contracts that were renewed during the quarter, the average labor wage rate increased 0.3%.
United StatesCanada
 QuarterYearQuarterYear
Aluminum Conduit1.1%3.1%0.8%6.6%
Asphalt Shingles0.7%2.8%0.9%5.4%
Concrete Block0.7%3.2%0.7%4.7%
Drywall-0.6%0.3%0.2%4.5%
Felt Paper0.1%-0.3%1.2%4.9%
Galvanized Pipe0.6%2.8%1.3%6.6%
Lumber1.2%-8.2%0.3%-12.0%
Plywood-1.9%-13.6%-1.4%-9.4%
Ready Mix0.6%4.8%0.7%5.0%
Rebar0.7%1.2%-0.6%-4.7%
Steel Deck0.5%1.1%1.9%5.2%
Steel Stud-0.1%1.3%1.3%5.0%
Structural Steel-0.6%-3.0%0.8%1.3%
1/2″ Copper Pipe-0.1%-1.8%1.7%5.4%

National Average

Residential Reconstruction Costs
1Q20 to 2Q20

Quarterly Variance
United States0.37%
Canada0.58%
 

About CoreLogic Data Research

To ensure that our clients receive the most current building material and labor costs, the CoreLogic data team continuously researches hard costs such as labor, material and equipment, including mark-ups. Our research also covers soft costs such as taxes and fringes for reconstruction work performed for the insurance industry in the United States and Canada. We monitor demographics and econometric statistics, government indicators, and localization requirements, including market trends from nearly 3,000 unique economies in the United States, and over 100 in Canada.

Other factors in this process include the following:

  • Wage rates for more than 85 union and non-union trades
  • Over 100,000 line items of construction data
  • Productivity rates and crew sizes
  • Local cost concerns, such as building code requirements and other localized variables

In addition, we validate cost data by analyzing field inspection records, contractor estimates, phone surveys and partial and full loss claim information. For more information, or for further explanation, please contact your sales consultant or account manager.

NOTE: The cost information in this bulletin is only intended to give you a general sense of reconstruction cost trends in North America. You should NOT advocate using these factors when adjusting renewal values for specific locations or across your book of business. Please note that the building material and labor cost trends presented in this bulletin are broad averages derived from our research of construction trades and building materials.

UNITED STATES

U.S. RCT Express® Cost Changes

The tables below provide a snapshot of the changes in reconstruction costs for residential buildings in the 1st quarter.

From Q4 2019 to Q1 2020, the average for U.S. building materials increased by 0.01%. For labor, the average wage rate increased 0.6%, based on construction trade contracts that were renewed during the quarter.

CoreLogic monitors a wide variety of construction materials for the residential building industry. A snapshot of some of the most common material elements is listed below:

US2Q183Q184Q181Q192Q193Q194Q191Q20
1/2″ Drywall2.5%1.7%0.5%-0.2%0.0%0.4%0.4%-0.6%
Asphalt Shingles0.3%1.7%2.9%2.4%0.7%1.0%0.4%0.7%
Romex Wire2.9%-1.0%-3.3%-2.4%-0.5%-1.6%-3.0%-1.1%
1/2″ Plywood7.0%2.1%-5.3%-6.9%-5.0%-4.5%-3.0%-1.9%
2×4 Lumber5.3%6.8%-5.0%-8.2%-5.7%-2.8%-1.0%1.2%
R-13 Fiber Batt Insulation-1.1%1.8%2.2%0.5%1.6%0.8%1.7%1.7%
1/2″ Copper Pipe-0.1%-0.2%-1.6%-0.5%0.5%-1.0%-1.2%-0.1%
Ready Mix-0.8%-0.4%0.1%0.3%2.3%1.1%0.7%0.6%
Felt Paper0.3%0.5%0.7%-0.1%-0.7%-0.1%0.4%0.1%

United States Cost Variances by State

Residential Reconstruction Costs
1Q20 to 2Q20

 
StateQuarterly Variance
Alabama0.37%
Alaska0.30%
Arizona0.28%
Arkansas0.13%
California0.18%
Colorado0.43%
Connecticut0.64%
Delaware0.25%
Florida0.44%
Georgia0.49%
Hawaii0.22%
Idaho0.66%
Illinois0.81%
Indiana0.36%
Iowa0.24%
Kansas0.32%
Kentucky0.23%
Louisiana0.07%
Maine0.58%
Maryland0.22%
Massachusetts0.51%
Michigan0.39%
Minnesota0.46%
Mississippi0.30%
Missouri0.29%
Montana0.51%
Nebraska0.23%
Nevada0.59%
New Hampshire0.58%
New Jersey0.43%
New Mexico0.34%
New York0.65%
North Carolina0.17%
North Dakota0.78%
Ohio0.30%
Oklahoma0.23%
Oregon0.61%
Pennsylvania0.44%
Rhode Island0.22%
South Carolina0.69%
South Dakota0.55%
Tennessee0.17%
Texas0.30%
Utah0.38%
Vermont0.82%
Virginia0.27%
Washington0.38%
West Virginia0.42%
Wisconsin0.38%
Wyoming0.40%
us-rct-express-cost-variance-state-french q2 2020

Canada

Canada RCT Express® Cost Changes

The tables below provide a snapshot of the changes in reconstruction costs for residential buildings in the 1st quarter.

From Q4 2019 to Q1 2020, the average change for Canadian building materials was an increase of 0.8% over the quarter. For labor, the average wage rate increased 0.3% based on the construction trade contracts that were renewed during the quarter.

CoreLogic monitors a wide variety of construction materials for the residential building industry. A snapshot of some of the most common material elements is listed below:

Canada2Q183Q184Q181Q192Q193Q194Q191Q20
1/2″ Drywall3.8%2.5%1.3%1.3%2.7%1.1%0.4%0.2%
Asphalt Shingles0.9%1.9%0.6%0.8%1.0%1.5%1.9%0.9%
Romex Wire2.8%0.5%-0.5%0.7%-0.2%0.6%-0.6%0.0%
1/2″ Plywood5.4%4.5%-5.0%-4.4%-3.1%-3.2%-2.1%-1.4%
2×4 Lumber3.2%8.5-4.1%-6.6%-5.9%-4.4%-2.4%0.3%
R-13 Fiber Batt Insulation1.9%1.5%1.3%1.5%1.5%2.1%2.3%2.3%
1/2″ Copper Pipe-0.9%-0.2%0.3%2.2%1.8%0.4%1.4%1.7%
Ready Mix-3.5%-1.5%0.2%0.7%2.5%1.0%0.8%0.7%
Felt Paper0.4%0.5%0.8%0.6%0.8%1.3%1.5%1.2%

Canada Cost Variances by Province

Residential Reconstruction Costs
1Q20 to 2Q20

ProvinceQuarterly Variance
Alberta0.79%
British Columbia1.16%
Manitoba1.08%
New Brunswick0.54%
Newfoundland0.67%
Northwest Territory0.69%
Nova Scotia0.42%
Ontario0.96%
Prince Edward Island-0.70%
Quebec0.52%
Saskatchewan0.72%
Yukon Territory0.58%
canada-rct-express-cost-variance-proviance-q2-2020

Whats New

Note: CoreLogic recommends a full program install whenever possible to ensure use of latest data and program enhancements.

Cost Data Changes: RCT Express 4.x, High Value, Main Street/MMH

  • The 2nd quarter 2020 cost data update reflects reconstruction cost changes in both labor and material for RCT Main Street, Mobile/Manufactured Homes, High Value, and Express 4.x. Standardized costs in this release reflect localized, updated costs representing the impact of emerging markets and economic trends on construction costs.

Non-Cost Data Changes:  RCT Express 4.x

– There are no Non-Cost Data changes for 2Q20.

Non-Cost Data Changes:  High Value

– There are no Non-Cost Data changes for 2Q20.

Non-Cost Data Changes: RCT Mainstreet and Mobile/Manufactured Housing (MMH)

– There are no Non-Cost Data changes for 2Q20.